
By now you might know that professional hockey will be played once again on the ice in Portland starting in the fall of 2018. While hockey is by far the most noteworthy news coming out of the arena there are other things that have been done that will help to make it financially viable for years to come.
The Board of Trustees, to which I was appointed in December, had a great deal of work to do as the calendar turned to 2017. During the initial meetings of our nine-member board, several topics came to light. First, the elephant in the room was whether we could attract a major anchor tenant for the arena. Secondly, with the recent bond to renovate the Cross Insurance Arena, we were under pressure to maximize the revenue and plan for the future expenses for the building. Lastly, we sought to work with the County Commissioners to be more transparent in our budget and oversight process.
From a short-term perspective, the anchor tenant issue was really the most important. Having a hockey team call the arena home meant that we could guarantee numerous dates where the building would have constant traffic. Additionally, the revenue brought in by building rent for game days and the sales of all manner of items, from tickets to pretzels to a cup of your favorite beverage, would help the overall bottom line. Games bring a level of excitement.
Whether it was a high school basketball tournament or a Maine hockey game, an anchor sports team could draw thousands of fans. Without that special regular tenant, the arena would be just another largely unused building.
We had really good offers come in during the winter and spring. In the end, we chose an organization that provides both the best long term viability and structure to make a relationship worthwhile. The Board sought out and found an offer that shared our desire to make the arena and its team a family friendly game experience.
Maximizing our revenue also meant that we needed to keep our existing sponsors. Most, if not all, of the contracted advertisement deals, pour rights and club seating sponsors were enhanced by having a sports team playing in the building. Remember that the previous anchor tenant played their last game in the spring of 2016.
While many of our sponsors kept a keen eye on what was going to happen with a major tenant, they did not waver. Through the hard work of the building management staff and the Trustees, we did not lose a single advertiser or sponsor despite the loss of hockey. Those sponsors continue to provide a major source of revenue for the building and allow the arena to put on events in a financially mindful and aesthetically pleasing way.
We also worked to support a bill that was placed before the Legislature by Representative Paul Chace of Durham. Representative Chace’s bill worked to streamline the process by which the arena is funded and maintained. No longer would the Board of Trustee’s work outside the oversight of the County Commissioners — instead, the two bodies would work together for the long term benefit of the arena and more importantly the tax payers of Cumberland County.
In the past, the Trustees would deliver a budget or funding request to the County Commissioners. In some cases, the Commissioners were unaware of a developing need, but they were required to pay the bill by passing the costs onto the municipalities of Cumberland County. In the end, the bill by Representative
Chace will allow for better management of both day to day operations and long-term viability for the arena.
Lastly, the Board of Trustees sought a comprehensive plan for the arena. We took seriously the stewardship of the recent renovation and the need to plan ahead for all future needs for the facility. Matt Herpich, the general manager of the arena and his staff, laid out an ambitious plan for the arena that called for the eventual replacement of the systems in the building. From the scoreboard to the Zamboni’s to the kitchen equipment and ice rink cooling systems everything was given a life expectancy and their approximate costs.
These projected costs, while sobering, will allow us to make better decisions now in a way that lessens the impact of immediate needs in the future. Keeping our eyes on the overall health of the arena will allow us to better utilize every dollar that is brought in by way of event revenue from tenants and tax collection.
As a member of the Board of Trustees I believe that the Board has sought to make the arena one that is not only a great place to visit for an event, but also a place that maximizes it’s value for all of the residents of this county.
That’s my two cents…
Jonathan Crimmins can be reached at j_ [email protected]
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